Citizens Board of Governors Meeting Report

Recently, Citizens Property Insurance Corporation (“Citizens”) held a Board of Governors (“Board”) meeting.  To view the complete agenda, which includes updates from the Committees that met during the past month, click here.

The meeting was called to order by Chairman Bruce Douglas, with a quorum of Board members in attendance.  Also in attendance were Chairpersons from the presenting Citizens Committees and other Citizens management staff.

Chairman Douglas stated that this would be the last meeting of the current Board, inasmuch as its term of appointment is ending.  Chairman Douglas announced he would not be seeking re-appointment, but that he will remain in contact with Citizens and continue to provide counsel when needed. 

Reporting on the June 18 Finance and Investment Committee meeting, Citizens’ Chief Financial Officer Sharon Binnun announced that the 2008 Liquidity Program has been completed, and that Citizens successfully procured $1.75 billion in pre-event financing.  To view a summary of the June 18 meeting, click here.

In his report, Scott Wallace, Citizens’ President, indicated that the Citizens Claims Handling Task Force (“Task Force”) third and final report was issued June 11.  At the Task Force’s last meeting, the possibility of a forthcoming report that would focus on recently-opened 2005 claims from Hurricane Wilma was announced.  To view a summary of the June 9 Task Force meeting, click here.

Citizens’ Executive Vice President of Insurance Operations David Emery reported that catastrophe operations support has been increased by 95 percent and workflow is being measured to provide equal work for each claims staff member.

Ms. Binnun presented the CFO Report that detailed Citizens’ March and April financial statements.  She stated that Citizens is demonstrating a progressively stronger monthly balance sheet.  To view the March 2008 statement, click here.  To view the April 2008 statement, click here. 

Curt Overpeck from the Information Technology (“IT”) Department updated the Board on Citizens’ new claims software.  He reported that within one year, the single personal lines platform will have integrated the following changes:

• Automated underwriting
• Electronic document submission
• Electronic payments
• Electronic document downloads for individual agency management systems

Within one year, the commercial lines platform will have:

• Automatic renewal for commercial residential policies
• A new commercial non-residential product
• Agency link, a policy quotation, application submission and document viewing program

Mr. Overpeck stated that due to IT changes already implemented this year, millions of dollars have been saved.

Richard DeChene, Chairman of Citizens Actuarial and Underwriting Committee, gave an update from the Committee’s most recent meeting on May 29.  To view a summary of that meeting, click here.

Mr. DeChene requested approval to implement the Multi-Peril Quote Acknowledgement Form for personal-residential wind-only risks.  This form will be required with all wind-only applications to ensure that all prospective High-Risk Account policyholders are given the option of purchasing a multi-peril policy. 

Mr. DeChene also requested approval to implement changes to the Disputed Claims Appraisal Process Following a Loss Policy Form.  These changes will clarify the duties for which each party is responsible and require an agreement regarding specific items to be appraised.  

Both requests were approved by the Board.

Audit Committee Chairman Earl Horton reported on the Committee’s most recent meeting.  Joyce Bellows, Citizens’ Chief of Internal Audit, recommended Board ratification of the Open Items Policy as approved by the Audit Committee at its June 12 meeting.  The Board ratified the Open Items Policy with no reservations.  To view a summary of the June 12 meeting, click here. 

Claims Committee Chairperson Gloria Fletcher gave an update from the most recent Claims Committee meeting.  To view a summary of the June 18 meeting, click here.

Ms. Fletcher requested Board approval of the top- and emergency-tier Independent Adjuster firms approved at the June 18 Committee meeting.  The Board approved the top-tier appointments.  The Board also approved the emergency-tier appointments subject to verification of the scoring process.  To view a list of companies appointed as top-tier selections, click here.

George Grawe, Chairman of the Market Accountability Advisory Committee, reported on that Committee’s June 18 meeting.  To view a summary of this meeting, which included the 2008 Legislative Report, click here.  

Chairman Douglas discussed the new Citizens Mission Review Task Force established by SB 2860 and appointed Ms. Binnun to it.

Chairman Douglas stated he has been asked to provide Florida CFO Alex Sink with a report detailing Citizens’ legislative goals for 2009. 

Those goals include:

• Encouraging a legislative focus on mitigation
• Setting up a loan program with the banking industry to help Citizens’ policyholders with home-hardening 

Mr. Wallace presented the Consent Agenda for Board approval, which included term contracts for the following:

• Web-based learning system
• Independent Adjuster firms
• CSC Personal Lines data management
• Emergency procurement of professional recruiting services
• Broker-dealers for the HRA 2008A Liquidity Program contract revisions

The Board approved all items on the Consent Agenda with no discussion.

The meeting was then adjourned.

 

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.